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Jan. 20, 2006

This past week witnessed increased activity in the State Capitol as the Legislature returned for the first of several 2006 floor periods that will wind up a very busy 2005-06 legislative session. In addition, Governor Doyle delivered his State of the State Address to a joint session of the Wisconsin Legislature, laying out his agenda for the coming months. (See article and link below.)

Both houses of the Legislature held two days of floor periods and have scheduled their respective calendars for next Tuesday. The civil justice issues have not disappeared from the spotlight despite the Governor’s vetoes of all reform bills that have reached his desk. The Assembly attempted to override the Governor’s veto of the reinstatement of caps on noneconomic damages in medical malpractice cases, but fell three votes short of the required two-thirds to override. Next Tuesday the Assembly will vote on, and is likely to pass, a bill to heighten the standards for the award of punitive damages and a bill to provide certain liability exemptions for claims based on weight gain or obesity.

It has been reported that this session has seen the highest number of bills introduced since the 1995 session. (We can expect a very busy Legislature over the near term.) Tidbits will concentrate its focus on legislative issues during the upcoming floor sessions and work periods before changing the focus to what promises to be a very interesting election year. Much of what has and will continue to be legislative and gubernatorial policy initiatives in the legislative arena, are, of course, a prelude to the upcoming campaign season.

Policy Developments

State of the State Address
Gov. Jim Doyle's annual State of the State address Tuesday night included plans for several new initiatives, including:

• Creating a new health insurance program for children called BadgerCare Plus.

• Creating a large, low-cost insurance pool for Wisconsin employers designed to address the cost of catastrophic care.

• A new financial aid package for college for 8th graders who maintain a B average and stay out of trouble.

• An expansion of Wisconsin's Family Care program

• An initiative aimed at helping Wisconsin capture 10 percent of the stem cell research market by 2015.

• $6 million to help people with rising heating costs.

• $9.5 million in private venture capital for startup businesses in northeastern Wisconsin, which has been designated the "New North."

• A tax credit for poor parents working at least 35 hours a week designed to ensure their incomes meet the federal poverty level of $19,350 for a family of four.

• Outlawing the practice of "health care dumping."

• Creating a manufacturing supply chain initiative within existing Commerce resources to help small and medium sized manufacturers that supply large OEM’s. 

Revenue Estimate Increase
The Legislative Fiscal Bureau (LFB) reported this week that revenue estimates are exceeding previous estimates by approximately $93 million. About one half of that figure is due to an increase in estimated tax collections. The biggest increase is in estimated lapses to the general fund, mainly under spending in MA, but almost one half of that is offset in increased sum sufficient appropriations.

Punitive Damage Legislation Advances/Other Judiciary Committee Action
The Assembly Judiciary Committee has recommended passage of AB-843, and the Senate Judiciary Committee has recommended passage of SB-447, both relating to the standards for the award of punitive damages in response to the Wischer v. Mitsubishi case handed down by the Wisconsin Supreme Court in March of last year.

Assembly Bill 843 has been scheduled for floor action in the Assembly next Tuesday, Jan. 24.

The respective Judiciary Committees also recommended passage of amended versions of AB-855/SB-501, which relate to damages for frivolous claims, which would alter Supreme Court Order 03-06 adopted last year in response to a petition filed by plaintiff and defense lawyers and the State Bar of Wisconsin.

AB-657, which relates to eminent domain powers of local governments and prohibits condemnation of property under certain circumstances in response to the U.S. Supreme Court’s Kelo case, was recommended for concurrence (3-2) by the Senate committee. The committee also recommended an amendment that would limit the scope of the bill as it relates to condemnation powers related to certain public utility activities.

The Senate Judiciary Committee also recommended passage of SB-425, which restricts the Department of Justice and Attorney General’s nuisance authority, and concurrence in AB-594, which makes changes to the laws relating to repossession of goods in consumer credit transactions.

Malpractice Override Falls Short
The State Senate on Thursday came up three votes short necessary to override Governor Doyle’s veto of AB-766 that would limit pain and suffering awards to medical malpractice victims.

With a 63-36 vote, supporters of the bill included three Democrats - Reps. Spencer Black of Madison, Mary Hubler of Rice Lake and Amy Sue Vruwink of Milladore.

Full Senate action on Thursday, Jan. 19, included:

SB-450. Construction liens - passed on voice vote.

AB-456. Prepayment penalties on variable rate residential mortgage loans- passed (21-12).

AB-496. Defaults in consumer credit transactions involving motor vehicle consumer leases or credit sales – passed.

AB-802. Supplemental MA payments to county and municipal nursing homes – passed (33-0).

Calendars for Tuesday, January 24.

The Assembly schedule includes:

AB-338, relating to exemption for claims resulting from weight gain and obesity;

AB-843, relating to the standards for the award of punitive damages;

AB-855, relating to frivolous lawsuits.

The Senate schedule includes:

SB-375, relating to tool and die liens;

AB-116, relating to expanding the definition of industrial development project and limiting the scope of certain projects.

Study: Ethanol Mandate to Increase Utility Costs
A new study by BBC Research and Consulting found that a proposal to force consumers to buy gasoline blended with 10 percent ethanol will drive up utility costs in Wisconsin by $366 million – 7 percent – and result in up to 4,000 lost jobs.

The study found that if NOx emissions increase by 2 percent under the ethanol mandate, as predicted by the DNR, then the $366 million in utility rate hikes will be required to compensate for the clean up.

A Senate committee heard testimony on the bill, AB-15, on Wednesday. Governor Doyle, in his state of the state speech Tuesday night, reiterated his support of the ethanol requirement.

State Agencies Draft EIS for Transmission Project
The Public Service Commission of Wisconsin (PSC) and Department of Natural Resources (DNR) have issued a draft environmental impact statement on American Transmission Company’s (ATC) application to build new transmission facilities in Marathon, Shawano, Oconto, Waupaca and Outagamie counties.

ATC has asked for permission to build two 345-kilovolt power lines and one 138-kilovolt line in central and northeastern Wisconsin and a switching station in Shawano County. The total estimated cost of the project is approximately $257 million.

ATC must receive authority from the PSC and obtain water and wetland permits from the DNR before construction can begin. As part of the review process, the PSC, DNR and the Department of Agriculture, Trade and Consumer Protection have worked together to prepare a draft environmental impact statement. The draft environmental impact statement addresses the social, cultural and environmental impacts of the proposed project.

Midwife Licensure Bill (SB 477) Passes Senate Health Committee
On Wednesday, Jan. 18, the Senate Health Committee recommended SB-477 for passage as amended on a vote of 4-1 with Sens. Roesssler, Darling, Brown and Erpenbach voting for and Sen. Carpenter voting against. The bill relates to the licensing and regulation of midwives and prohibits persons not so licensed and regulated from using the midwifery title.

The Senate Committee endorsed three amendments consistent with the three amendments adopted by the Assembly Health Committee on the companion Assembly Bill (AB-709).  See the Wisconsin Legislative Council’s Amendment Memo.

The Assembly Bill was reported out of committee and referred to the Joint Finance Committee on January 9. The Joint Finance Committee has scheduled an executive session on AB 709 / SB 477 for Wednesday, January 25.

Wisconsin Politics

Green and Walker React to State of the State
In addition to other criticisms, gubernatorial candidate Mark Green used the opportunity to chide the Governor on his liability reform vetoes: “Due to some very poor decisions by the Wisconsin Supreme Court, our state's manufacturers and doctors are in jeopardy of being the top targets in the country for frivolous litigation. Is there any lawsuit reform that Jim Doyle can support, or will he always put trial lawyer paydays ahead of Wisconsin families?”

Meanwhile, Green’s primary opponent, Scott Walker, also critical of a number of the Governor’s initiatives, did take the following tact on FamilyCare: “I am pleased that Governor Doyle is once again following my lead. At a candidate forum on Friday, Jan. 6, 2006, I publicly called for the expansion of the FamilyCare program.”

Newcomer Sworn In
The newest State Representative, Scott Newcomer, R-Delafield, has been sworn in.

He officially became the Representative of the 33rd AD during a ceremony before the State of the State Address. Newcomer replaced Dan Vrakas, recently elected County Executive for Waukesha County.

Political News

Legislature Considers Mandating Ethanol Requirement For Gas: Channel3000, Jan. 20, 2006.

State expects extra tax income: Milwaukee Journal Sentinel, Jan. 20, 2006.

Override fails on pain damages: Milwaukee Journal Sentinel, Jan. 20, 2006.

Legislators eager to hear what Doyle says: Wausau Daily Herald, Jan. 17, 2006.

State of the state: Governors' annual talks are usually forgettable: Racine Journal Times, Jan. 17, 2005.

Public needs facts before mandated usage of ethanol (opinion): Manitowoc Herald Times, Jan. 17, 2006.

Doyle to propose energy cost aid: Appleton Post-Crescent, Jan. 17, 2006.

Students want to know why learning's wrong (opinion): Milwaukee Journal Sentinel, Jan. 17, 2006.

No LAFing matter: License-applied-for wait has doubled: Milwaukee Journal Sentinel, Jan. 17, 2006.

Red Cross promotes blood donations: Sheboygan Press, Jan. 17, 2006.

Foti might testify against Jensen: Milwaukee Journal Sentinel, Jan. 13, 2006

PSC and the public interest (opinion): Milwaukee Journal Sentinel, Jan. 13, 2006.

Let’s have more realistic estimates of fuel usage (opinion): La Crosse Tribune, Jan. 13, 2006.

Businessman blasts Wisconsin's economic climate: Manitowoc Herald Times, Jan. 13, 2006.

Politicians return campaign donations: Milwaukee Journal Sentinel, Jan. 12, 2006.

Newcomer to replace Vrakas in Assembly: Milwaukee Journal Sentinel, Jan. 11, 2006.

Rep. McCormick to run for Congress: Madison Capital Times, Jan. 9, 2006.

Election for governor looms as costliest in state history: Appleton Post-Crescent, Jan. 8, 2006.

For more Wisconsin News, go to Hamilton Consulting News Clips.

Upcoming Fundraisers

For details, go to Hamilton Consulting Fundraiser Calendar.

Jan. 25, 2006

• Scott Walker (R) gubernatorial candidate, Milwaukee